U.S. Jobless Rate Probably Unchanged in July

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http://www.bloomberg.com/news/2011-07-31/economy-in-u-s-probably-failed-to-create-enough-jobs-to-cut-unemployment.html

The U.S. probably failed to create enough jobs in July to reduce unemployment, showing anxiety over government debt deliberations and a slowdown in consumer spending have shaken employer confidence, economists said before reports this week.

Payrolls climbed by 90,000 workers after an 18,000 increase in June that was the smallest this year, according to the median forecast of 62 economists surveyed by Bloomberg News before a Labor Department report Aug. 5. The jobless rate held at 9.2 percent after rising in each of the previous three months.

The lack of jobs threatens to further reduce consumer spending, raising the risk the economic recovery will come to a halt. The inability to reach an accord raising the debt ceiling and unexpectedly weak growth in the first half of 2011 caused the Standard & Poor’s 500 Index to drop 3.9 percent last week, the most in a year.

“The whole uncertainty we’re seeing right now is going to keep firms cautious and households cautious,” said James Knightly, a senior economist at ING Bank NV in London. “It’s unlikely anybody is going to go on a hiring binge in that environment. The risk is we see ongoing softness.”

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1. July jobless rate will probably be revised upward in January. Along with the rest of 2011.

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2. unconscionable that this crisis is so ignored